MIRA
INFORM REPORT
|
Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
PRAKASH INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
15, Km. Stone, Delhi Road, Hissar – 125044, Haryana |
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Country : |
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Financials (as on)
: |
31.03.2012 |
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Date of
Incorporation : |
31.07.1980 |
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Com. Reg. No.: |
010724 |
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Capital
Investment / Paid-up Capital : |
Rs.1344.900
Millions |
|
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|
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CIN No.: [Company Identification
No.] |
L27109HR1980PLC010724 |
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|
PAN No.: [Permanent Account No.] |
AABCP6765H |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Black and White Picture Tubes, Worsted Yarn and Video
Cassettes. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 78300000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a well-established company having a fine track record. The company has achieved better growth in its sales turnover during 2012.
Financial position appears to be strong and healthy. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Issuer Ratings: BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
19.03.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
15, Km. Stone, Delhi Road, Hissar – 125044, Haryana, India |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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|
Website : |
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Head Office : |
Srivan, Bijwasan, New Delhi – 110061, India |
|
Tel. No.: |
91-11-25305800 and 28062115/ 16 |
|
Fax No.: |
91-11-28062119 |
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E-Mail : |
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Works : |
Located at: · Champa (Chhattisgarh) · Chotia (Chhattisgarh) · Raipur (Chhattisgarh) · Kashipur (Uttarakhand) · Koira, Distt. Koenjhar (Odisha) · Muppandal (Tamil Nadu) |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. V. P. Agarwal |
|
Designation : |
Chairman |
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|
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Name : |
Mr. Vikram Agarwal |
|
Designation : |
Managing Director |
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|
Name : |
Dr. S. L. Keswani |
|
Designation : |
Director |
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|
Name : |
Mr. K. C. Mehra |
|
Designation : |
Director |
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Name : |
Dr. Ram K. Vepa |
|
Designation : |
Director |
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|
Name : |
Mr. Manish Bahl |
|
Designation : |
Director |
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|
Name : |
Mr. Piyoosh Goyal |
|
Designation : |
Director |
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Name : |
Mr. M. L. Pareek |
|
Designation : |
Whole – time Director |
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|
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|
Name : |
Mr. Vipul Agarwal |
|
Designation : |
Whole – time Director |
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|
|
Name : |
Mr. P. L. Gupta |
|
Designation : |
Whole – time Director |
KEY EXECUTIVES
|
Name : |
Mr. Manoj Agarwal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
7165528 |
5.33 |
|
|
55356862 |
41.16 |
|
|
62522390 |
46.49 |
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|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
62522390 |
46.49 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
4315687 |
3.21 |
|
|
3785 |
0.00 |
|
|
739666 |
0.55 |
|
|
2957933 |
2.20 |
|
|
8017071 |
5.96 |
|
|
|
|
|
|
|
|
|
|
33240660 |
24.72 |
|
|
|
|
|
|
|
|
|
|
19655630 |
14.62 |
|
|
10535950 |
7.83 |
|
|
516813 |
0.38 |
|
|
516813 |
0.38 |
|
|
63949053 |
47.55 |
|
|
|
|
|
Total Public
shareholding (B) |
71966124 |
53.51 |
|
|
|
|
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Total (A)+(B) |
134488514 |
100.00 |
|
|
|
|
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total (A)+(B)+(C) |
134488514 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Black and White Picture Tubes, Worsted Yarn and Video
Cassettes. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Corporation Bank · Kotak Mahindra Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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|
Name : |
Chaturvedi and Partners Chartered Accountant |
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Joint Venture : |
· Madanpur (North) Coal Company Private Limited · Fatehpur Coal Mining Company Private Limited |
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|
|
|
Enterprise on
which key management personnel and/or their relatives exercises significant
influence with whom transactions have taken place during the year. |
· Primenet Global Limited · Surya Roshni Limited · Prakash Natural Resources Limited · Vanshi Farms Private Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
170000000 |
Equity Shares |
Rs.10/- each |
Rs.1700.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
134488514 |
Equity Shares |
Rs.10/- each |
Rs.1344.900
Millions |
|
|
|
|
|
NOTE:
(a) Reconciliation
of shares outstanding at the beginning and end of the reporting period.
|
Particulars |
31.03.2012 |
|
|
|
No. of Shares |
Rs. In Millions |
|
At the beginning of the year |
134488514 |
1344.900 |
|
Issued during the year |
|
|
|
-- On conversion of FCCB |
-- |
-- |
|
-- On conversion of Equity share
Warrants |
-- |
-- |
|
Outstanding at the end of the
year |
134488514 |
1344.900 |
(b) Terms/rights attached to equity shares
The Company has only
one class of equity shares having par value of ` 10 per share. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays
dividend in Indian rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General
Meeting. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the company after distribution of all the
preferential amounts, in proportion to their shareholding.
(c) Details of shareholders holding more than 5%
shares in the Company.
|
Name of the Shareholder |
31.03.2012 |
|
|
|
No. of Shares
Held |
% of
Holding |
|
Amarjoti Vanijya Private Limited |
10375750 |
7.71 |
|
GMK Builders Private Limited |
8164800 |
6.07 |
(d) Foreign Currency Convertible Bonds (FCCB)
holders have an option to get their bonds converted into equity shares of the
Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
1344.900 |
1344.900 |
|
(b) Reserves & Surplus |
|
18236.300 |
15843.000 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3) Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
8621.500 |
6008.100 |
|
(b) Deferred tax liabilities (Net) |
|
806.200 |
802.000 |
|
(c) Other long term liabilities |
|
0.000 |
0.000 |
|
(d) long-term provisions |
|
127.200 |
113.600 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term borrowings |
|
114.200 |
198.500 |
|
(b) Trade payables |
|
364.800 |
505.000 |
|
(c) Other current
liabilities |
|
1878.600 |
1076.400 |
|
(d) Short-term provisions |
|
273.800 |
699.200 |
|
TOTAL |
|
31767.500 |
26590.700 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
16012.100 |
10462.200 |
|
(ii) Intangible Assets |
|
110.000 |
137.000 |
|
(iii) Capital
work-in-progress |
|
7953.600 |
8765.300 |
|
(iv) Intangible
assets under development |
|
464.900 |
358.200 |
|
(b) Non-current Investments |
|
21.400 |
20.200 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
3128.600 |
3077.900 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
482.900 |
250.100 |
|
(b) Inventories |
|
1784.600 |
1623.900 |
|
(c) Trade receivables |
|
922.200 |
864.300 |
|
(d) Cash and cash
equivalents |
|
497.200 |
630.100 |
|
(e) Short-term loans and
advances |
|
381.200 |
398.000 |
|
(f) Other current assets |
|
8.800 |
3.500 |
|
TOTAL |
|
31767.500 |
26590.700 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
1216.937 |
|
|
2] Equity Share Warrants |
|
|
651.835 |
|
|
3] Share Application Money |
|
|
0.000 |
|
|
4] Reserves & Surplus |
|
|
12439.233 |
|
|
5] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
14308.005 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1029.758 |
|
|
2] Unsecured Loans |
|
|
1271.634 |
|
|
TOTAL BORROWING |
|
|
2301.392 |
|
|
DEFERRED TAX LIABILITIES |
|
|
771.834 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
17381.231 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
10746.679 |
|
|
Capital work-in-progress |
|
|
3026.258 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
22.183 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
1018.916 |
|
|
Sundry Debtors |
|
|
820.093 |
|
|
Cash & Bank Balances |
|
|
1017.848 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
2369.597 |
|
Total
Current Assets |
|
|
5226.454 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
959.941 |
|
|
Other Current Liabilities |
|
|
63.322 |
|
|
Provisions |
|
|
781.083 |
|
Total
Current Liabilities |
|
|
1804.346 |
|
|
Net Current Assets |
|
|
3422.108 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
164.003 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
17381.231 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21069.300 |
16641.000 |
15676.568 |
|
|
|
Other Income |
24.600 |
87.300 |
30.484 |
|
|
|
Liabilities Written Back |
0.000 |
0.000 |
213.750 |
|
|
|
TOTAL (A) |
21093.900 |
16728.300 |
15920.802 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
13982.000 |
10125.600 |
8951.035 |
|
|
|
Changes in Inventories of
Finished Goods Work in Progress and Stock in Trade |
(44.900) |
(20.500) |
(44.928) |
|
|
|
Employee Benefits Expenses |
892.800 |
777.800 |
680.715 |
|
|
|
Other Expenses |
2582.600 |
2352.900 |
2778.753 |
|
|
|
TOTAL (B) |
17412.500 |
13235.800 |
12365.575 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3681.400 |
3492.500 |
3555.227 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
138.600 |
56.900 |
254.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3542.800 |
3435.600 |
3300.427 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
782.500 |
699.500 |
567.867 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2760.300 |
2736.100 |
2732.560 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
78.700 |
65.300 |
70.944 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2681.600 |
2670.800 |
2661.616 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
131.642 |
70.026 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
2500.000 |
2600.000 |
|
|
|
Proposed Dividend on Equity Shares |
NA |
134.489 |
0.000 |
|
|
|
Tax on Dividend |
NA |
21.817 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
146.136 |
131.642 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
287.900 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
0.000 |
32.567 |
|
|
|
Stores & Spares |
3.100 |
3.850 |
4.221 |
|
|
|
Plant and Machinery |
7.300 |
6.301 |
9.891 |
|
|
TOTAL IMPORTS |
10.400 |
10.151 |
46.679 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
19.94 |
21.07 |
22.82 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
6722.500 |
6311.200 |
6052.000 |
6023.400 |
|
Total Expenditure |
5738.800 |
5483.500 |
5404.500 |
5220.100 |
|
PBIDT (Excl OI) |
983.700 |
827.700 |
647.500 |
803.300 |
|
Other Income |
4.300 |
8.100 |
1.700 |
10.500 |
|
Operating Profit |
988.000 |
835.800 |
649.200 |
813.800 |
|
Interest |
128.200 |
125.000 |
152.500 |
147.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
859.800 |
710.800 |
496.700 |
666.200 |
|
Depreciation |
253.200 |
257.200 |
278.800 |
274.500 |
|
Profit Before Tax |
606.600 |
453.600 |
217.900 |
391.700 |
|
Tax |
6.100 |
7.900 |
4.400 |
2.500 |
|
Provisions and contingencies |
213.500 |
213.500 |
213.500 |
213.500 |
|
Profit After Tax |
600.500 |
445.700 |
213.500 |
389.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
600.500 |
445.700 |
213.500 |
389.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
12.71
|
15.97 |
16.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.10
|
16.44 |
17.43 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.83
|
15.68 |
17.11 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.16 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.45
|
0.36 |
0.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.55
|
1.52 |
2.90 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes
/ No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
-----------------------------------------------------------------------------------------------------------------------------------------
CASE DETAILS
IN THE HIGH COURT OF DELHI AT NEW DELHI
|
Petitioner |
Era Buildsys Ltd … Plaintiff Through: Mr. Vijay K. Singh Adv. |
|
|
|
|
Respondent |
Prakash Industries Ltd…. Defendant Through: Ms. Preeti Khiwani, Adv. |
|
|
|
|
Order |
20.05.2013 |
|
At Joint
request, case is adjourned to 7th October, 2013. |
|
-----------------------------------------------------------------------------------------------------------------------------------------
UNSECURED LOANS
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
LONG TERM
BORROWINGS |
|
|
|
Foreign Currency Convertible
Bonds (FCCB) |
3944.200 |
3475.500 |
|
|
|
|
|
Total |
3944.200 |
3475.500 |
|
NOTE: FCCB of
Rs.874.800 Millions (USD 17.1 Million) are due for redemption on 13th
October, 2014 and carry interest @5.625% and FCCB of Rs.3069.400 Millions
(USD 60 Million) are due for redemption on 30th April, 2015 and carry
interest @5.25%. However, the respective bond holders have an option to get
their bonds converted into equity shares of the Company on or before the
maturity date. Outstanding FCCB are repayable in Foreign Currency and their
repayments have not been hedged by any derivative instrument or otherwise by
the Company. |
||
PERFORMANCE
During the year, the
Company has achieved net sales revenue of Rs.21090.000 Millions as against
Rs.16730.000 Millions in the previous year. After providing for interest,
depreciation and tax, the net profit of the Company stands at Rs.2680.000
Millions during the year.
OPERATIONAL REVIEW
The performance in
all segments of the integrated steel plant of the Company has been quite
satisfactory. During the year the Company has successfully commissioned a Sponge
Iron kiln which has resulted in further integration of capacities and
substantial cost reduction. Further the Company has made additions in its power
generation capacities also. These capacity additions have helped the Company
achieve highest ever production in the Sponge Iron and Power segments. In the
steel segment the turnover has registered impressive growth resulting from
stable demand and much higher realisation. Captive coal mining operations and
production have been as per the targets. Rigid PVC Pipes has improved upon the
performance and has achieved highest ever production during the year. The
Company’s products are strongly placed in the market due to their superior
quality which gives them a distinct edge over competitors.
FUTURE PROSPECTS
The Company has undertaken further expansion in its Sponge Iron capacity
and is setting up an additional module. In addition, the Company has also taken
up expansion in its Steel Billet and Ferro Alloys capacity to reach the next
level of integration and to captively utilise the surplus power generation
arising out of the new capacity set up in this year.
The Company is in the midst of a major expansion the Power Generation
capacity and is implementing a total capacity of 625 MW in a phased manner. The
first phase of 100 MW has been commissioned towards the end of the last fiscal
year and the balance capacity shall be taken in a phased manner in due course
of time.
The Company is planning to further improve upon the capacity utilization
in the TMT division of the Company in the current financial year. The iron ore
mines allotted to the Company are under advanced stages of clearances with the
Government departments. With the mines becoming operational, the Company shall
be fully self reliant in terms of raw material requirement. All these steps are
expected to give further boost to the profitability of the Company in the
coming year.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE & DEVELOPMENTS
The Indian Steel Industry has huge growth potential in the coming years. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world and is expected to rise to the position of 2nd largest crude steel producer by 2016. As per the report of the Working Group on Steel for the 12th Plan, there is substantial scope for raising the per capita steel consumption in the country significantly in the light of estimated huge infrastructure investment, increase in urban population, emergence of the rural market for steel buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others. Based on the assessment of the current ongoing projects, it is estimated that the crude steel capacity in the county is likely to be 140 mt by 201617 and based on the status of MOUs signed by the private producers with the various State Governments, it is expected that India's steel capacity would exceed 200 mt by 2020. On the whole, the outlook for the domestic operating environment appears to be positive.
SEGMENT WISE / PRODUCT WISE PERFORMANCE / OUTLOOK
The Company is
primarily engaged in steel, power and mining operations.
The performance of
the integrated steel and power operations have been satisfactory during the
year. The Company augmented its Sponge Iron capacity by setting up an
additional kiln during the year, which shall contribute to significant cost
savings in the steel operations in the coming times. The performance of the
power division was also satisfactory. Out of the total 625 MW power capacity
expansion plan, the Company also successfully commissioned first 100 MW power
plant during the last financial year and the balance capacities shall be
implemented gradually in a modular fashion. The performance of the Wire Rod
Division of the Company continued to be satisfactory. The operations of the TMT
Bar Mill were also resumed during the later half of the year on revival of
demand. Captive coal mining operations continued at optimal level throughout
the year. Company is also into manufacture of Rigid PVC Pipes which has further
improved upon the performance and achieved highest ever production levels.
CONTINGENT LIABILITIES NOT
PROVIDED FOR IN RESPECT OF: (Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Guarantees/ Letter of credits issued by banks on behalf of the company |
290.800 |
262.000 |
|
Disputed demands of Excise Duty /Electricity dues/Lease rentals etc. (Amount paid there against Rs.18.000
Millions (Rs.38.400 Millions) |
226.600 |
251.700 |
FIXED ASSETS:
· Land (Freehold – Leasehold)
· Building
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Office equipment
· Moulds and Dies
NEWS:
THE ASIA – PACIFIC’S FIRST
VCS - CARBON TRADING FORESTRY PROJECT, SUCCESSFULLY TAKEN UP BY AN INDIAN
CORPORATE
As Prakash Industries Limited (PIL) has been expanding its business operation for the last few years while, continuously reinforcing its Social responsibility for the Nation as a whole.
The Company has always been deeply apprehensive about the dwindling scenario of the forests, in particular vis-ŕ-vis its gradual toll in the form of rising wastelands, the climatic auguries and the environmental imbalance.
As a matter of fact, the Company through its continuous efforts has successfully managed to initiate an extensive Afforestation/ Reforestation project on the degraded lands, of the state of Chhattisgarh through, its group companies, to mitigate the Climate Change and benefit the society, as a whole. The primary objective of this project is to redevelop forests, with the aim of restoring the environmental balance and also provide economic and social benefits to the people living around the region.
The plantation project of the company has not only generated rural employment but also has been a good source of Fuel wood for the rural masses and Fodder for the cattle populations in the deprived rural areas while, supporting the cause of the Wood based Industries through Timber wood generation, time to time as well. This project has already been certified as – (i) the “World’s SECOND” CCBA (Gold category Forestry project, in its own category), in accordance with the United Nation’s norms mitigating the Climate Change and, (ii) has also earned a reputation of being the “Asia Pacific’s FIRST ARR (Afforestation, Reforestation and Revegetation) project, under the VCS program of an International VCSA. The other intangible benefits being derived out of the same project are – (i) Rain water harvesting (ii) Replenishment of the underground water regime (iii) enhancement of the micro flora-fauna (iv) Soil-Moisture conservation (v) Creation of an Environment awareness / Watershed / Land use management and; (vi) the Micro climatic changes of the nearby areas etc.
The company intends to ameliorate 1000 hectares of Wasteland, as per its ambitious perceptive with the primary objective to – Ameliorate the Wastelands aspiring to mitigate the Environmental degradation while reducing the varied biotic pressures over the outstanding conventional forest areas vis - a - vis humanizing the rural Socio-economics of the inhabitants of the Company’s project areas.
The efforts of M/s. Prakash Industries Limited, in the highly specialized sphere of Carbon trading, in a unique category of Reforestation of the private Wastelands, are commendable and aspiring for many others to follow.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.91.99 |
|
Euro |
1 |
Rs.78.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
67 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.